Business rate relief for registered childcare premises in Wales has been made permanent, the Welsh Government has announced, to support nurseries to meet rising costs.

Estimated to save the sector £3.4 million annually, the now permanent non-domestic rates relief for childcare premises will “support childcare providers to invest in staff, create new jobs and reduce fee increases for parents,” the Welsh Government said.

Since 2019, premises like day nurseries have not paid business rates in Wales thanks to the small business rates relief scheme - helping many tackle rising costs and continue to operate.

Minister for Children and Social Care, Dawn Bowden said: “Childcare settings provide an essential service in Wales, offering nurturing environments for our children and helping parents to access employment, education or training.

“But we know that the sector is under significant pressure and in need of ongoing support to meet their costs.

“Making business rates relief for registered childcare premises permanent will be a huge boost to the sector, providing stability and helping providers reinvest savings back into their business to continue delivering high quality and affordable childcare.

“It is the right thing to do for our children, parents and providers now and for the future.”